This paper examines how the estimation results for a standard New Keynesian model with constant gain least squares learning is sensitive to the stance taken on agents beliefs at the beginning of the sample. The New Keynesian model is estimated under rational expectations and under learning with...

Das dritte Kapitel trägt den Titel "Anticipation, Learning and Welfare: the Case of Distortionary Taxation." Es handelt sich hierbei um eine Zusammenarbeit mit Shoujian Zhang. Im Fokus der Untersuchung stehen antizipierte Steuerreformen. Die Individuen in der Ökonomie haben nicht-rationale...

The present paper studies the effect of monetary policy on inflation and output within a New Keynesian model with Experience-Based Learning (EBL) that renders expectations heterogeneous across age groups. Under EBL, the age-distribution directly affects the composition of aggregate expectations...